The invention provides a method for preparing fullerene internally embedded with nitride clusters. According to the method, fullerene internally embedded with nitride clusters is obtained by arc discharge with a hollow graphite rod filled with mixed powder as an anode and a graphite electrode as a cathode, wherein the mixed powder comprises rare earth oxides, urea and graphite powder; since solidurea is used as a nitrogen source, an electric arc furnace does not need reforming, the graphite rod does not need preheating, and the synthesis step is simple; meanwhile, the urea has wide sources and low price, therefore, the production cost of the fullerene internally embedded with nitride clusters is reduced. Experiments show that the fullerene internally embedded with nitride clusters, prepared from the scandium oxide, the urea and the graphite powder by using the method provided by the invention, has high selectivity up to 12%, and 2.9 g of graphite powder can be used for preparing 5mg of fullerene internally embedded with nitride clusters.